Management Must Disclose Material Weaknesses in Internal Control in Its

question 31

Multiple Choice

Management must disclose material weaknesses in internal control in its audit report:

• A)whenever the weakness is deemed significant to a single class of transactions.
• B)whenever the weakness is significant to overall financial reporting objectives.
• C)if the weakness exists at the end of the year.
• D)only if the auditor identifies the weakness as significant.

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Definitions:

Physical Custody

A legal term referring to with whom a child lives and the arrangements for taking care of the child's daily needs.

Father

A male parent or guardian of a child, contributing to the child’s care, upbringing, and genetic makeup.

Stepparent Family

A rephrased definition: A family configuration where children are raised by a biological parent and their new spouse, who is not the children's biological parent.

Biological Children

Individuals who are the genetic offspring of their parents, sharing their DNA.